Time-dependent or state-dependent pricing? Evidence from a large devaluation episode

Celio Feltrin and Bernardo Guimaraes
Additional contact information
Celio Feltrin: Sao Paulo School of Economics - FGV

No 1504, Discussion Papers from Centre for Macroeconomics (CFM)

Abstract: State-dependent and time-dependent price setting models yield distinct implications for how frequency and magnitude of price changes react to shocks. This note studies pricing behavior in Brazil following the large devaluation of the Brazilian Real in 1999 to distinguish between models. The results are consistent with state-dependent pricing.

Keywords: State-dependent Pricing; Time-dependent Pricing; Currency Devaluation; Frequency of Price Changes (search for similar items in EconPapers)
JEL-codes: E31 E32 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2015-01
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.centreformacroeconomics.ac.uk/Discussio ... MDP2015-04-Paper.pdf (application/pdf)

Related works:
Working Paper: Time-dependent or state-dependent pricing? Evidence from a large devaluation episode (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cfm:wpaper:1504

Access Statistics for this paper

More papers in Discussion Papers from Centre for Macroeconomics (CFM) Contact information at EDIRC.
Bibliographic data for series maintained by Helen Power ().